Documented by Josef Sibala
Here’s what you need to know:
- At its meeting on Dec. 21, the Valley Air Governing Board accepted and appropriated $59.4 million in state funding for the Agricultural Measures For Emission Reduction (FARMER) program to replace agricultural equipment.
- The board updated on Assembly Bill 617 implementation and approved new incentive programs benefiting Valley communities by allocating $20 million for the existing zero-emission school bus replacement program and charging and infrastructure program.
- The board adopted proposed amendments to District Rule 4402 on crude oil production sumps. Lambert said the proposed District Rules 3172 and 3173 would fully satisfy federal CAA requirements by collecting nonattainment penalty fees if the Valley fails to attain the 2008 or 2015 federal eight-hour ozone standard.
- Sheikh noted the CARB approval of the funding plan for Clean Transportation incentives, amounting to $624 million, $140 million of which is for Community Phasing Programs, Clean Cars For All Program, and other programs.
Follow-up questions:
- How will the district work with school districts regarding the school bus replacement program?
- When will the district attain the 2008 or 2015 federal eight-hour ozone standard?
The Scene
According to its website, the San Joaquin Valley Air Pollution Control District (SJVAPCD) is composed of eight counties in the Central Valley: San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare and the San Joaquin Valley Air Basin portion of Kern.
The Valley Air District Board includes a 15-member governing board of representatives from the Board of Supervisors of all eight counties, one health and science member appointed by the governor, one physician appointed by the governor and five Valley city representatives.
The district met on Thursday, Dec. 21, 2023, at 9 am at 1990 E Gettysburg Ave., Fresno, CA 93726.
Officials present
- Chair and Supervisor at Stanislaus County Vito Chiesa
- Vice chair and council member at Los Banos Deborah Lewis
- Supervisor at Fresno County Buddy Mendes
- Supervisor at Merced County Lloyd Pareira
- Supervisor at Madera County Brian Macaulay
- Executive Director and Air Pollution Control Officer Samir Sheikh
- Supervisor at Kern County David Couch
- Robert Rickman, supervisor at San Joaquin County
- Alexander C. Sherriffs, M.D.
- Mayor of Avenal Alvaro Preciado
- Supervisor at Kings County Rusty Robinson
- Council member for Wasco Gilberto Reyna
- Council member for Modesto Rosa Escutia-Braaton
- Supervisor at Tulare County Amy Shuklian
- Tania Pacheco-Werner, Ph.D.
- Clovis Mayor Drew M. Bessinger
Others Present
- Connie Young
- Janet Dietzkamei
- Project Coordinator Todd DeYoung
- Deputy Air Pollution Control Officer Morgan Lambert
- Deputy Air Pollution Control Officer Sheraz Gill
- Kevin Hamilton
- Roger Isom
- Chris McGlothlin
- Jessica Olsen
Discussions/actions
The board approved the appointment of Chiesa as chairman and Lewis as vice chairman for 2024.
The board (15-0) approved items 20-24 on the consent calendar.
20. The board approved action summary minutes for the San Joaquin Valley Unified Governing Board meeting of Oct. 19.
21. The board received and filed a list of scheduled meetings for 2024.
22. The board received and filed an operations statistics summary for October and November.
23. The board received and filed budget status reports as of Nov. 30.
24. The board received and filed the District’s 2022-2023 Annual Offset Equivalency Report to the Federal Environmental Protection Agency.
During public comment, Saunders urged CARB to reconsider its transition deadlines and explore new technologies for small businesses and agriculture.
Dietzkamei urged a phaseout of fossil fuels due to rising temperatures caused by global warming.
Young sought the board’s support for the Energy Innovation and Carbon Dividend Act and the Market Choice Act.
10. The board (15-0) accepted and appropriated $59.4 million in state funding for the Agricultural Measures For Emission Reduction (FARMER) program to replace agricultural equipment.
DeYoung said the FARMER Program funds cleaner ag harvesting equipment, heavy-duty trucks, ag pump engines and tractors.
For the fiscal year 2023-24, the state Legislature allocated $75 million to CARB to fund grants with air districts under the fifth funding cycle of the FARMER program.
Of that amount, $74.3 million was made available to air districts statewide, and $750,000 was held for CARB program administration.
The district allocated $59.4 million, representing 80% of statewide funding for the program.
In March 2022, the board approved program enhancements to increase program access to small growers. Funding increased to 80% of eligible costs for equipment replacement for small ag operations less than 100 acres.
The pilot program will replace Tier 0/Tier One equipment with Tier 3 or cleaner used equipment. Since April 2022, 50% of the applications have come from small ag operations.
Macaulay asked how long the application takes to process. DeYoung said that application takes a year and urged applicants to prepare for their next year’s expenditures.
Isom and McGlothlin from the California Cotton Ginners and Growers Association added that reductions were enforced, and supported the program.
Responding to Dietzkamei, Sheikh said that electric pumps and equipment are eligible under the program.
11) The board (5-0) updated AB 617 implementation and approved new incentive programs benefiting Valley communities
Olsen said AB 617 mandated the community emission reduction program for low-income and disadvantaged communities in south central Fresno, Shafter, Stockton and Lemont.
In 2023, the district met the requirement of updating the public on the status of the community emission reduction program available in English and Spanish. Their outreach involved working with schools, parents, and residents and holding in-person meetings.
The funds obligated are higher in the earlier communities, with Arvin and Lamont receiving approval in October last year.
The district has entered an agreement with the city of Shafter on sidewalk and bypass improvements.
The district entered two contracts each for Tree Fresno and Central California Environmental Justice Network to plant trees for vegetative barrier and urban green within the community. The district hosted events to provide air purifiers for the CERP communities.
Over $282 million have been sent in the cap and match funding, which is invested in those who participate in the incentives.
The district achieved more than 9,000 tons of reductions such as NOX, PM 2.5 and VOC.
DeYoung said state guidelines require that funding be spent on the following:
- Measures within the adopted CERPs
- Traditional state incentive programs such as the Carl Moyer Program and Prop 1B Program, cap-specific enhancements
- Pre Approved items such as chrome plating, air filtration in schools and school bus replacement
- Allowance for stationary source projects.
Out of cap funds, the district has been allocated $64.3 million. DeYoung stated that there is a statutory deadline of four years for the funds to be liquidated.
Staff proposes to allocate $20 million for the existing zero-emission school bus replacement program and charging and infrastructure program to support zero-emission equipment.
The Ag Burn Alternatives and Load Dust Harvester programs will include the statewide CAP guidelines. DeYoung expected sideline revisions to be completed in April.
Staff proposes launching a new facilitation under the Zero Emission School Bus Program to cover public schools and joint power authorities that provide school bus transportation. The money will replace existing school buses with electric school buses.
Applicants for the program must have side contracts. Funding is 100% of the bus, based on cost-effectiveness.
The project must support the deployment of zero-emission and low-emission technology while benefiting low-income and disadvantaged communities.
Responding to Macaulay, Sheikh added that selecting a community within the program is under CARB. He said the program will involve working with cities, counties and community organizations to evaluate concerns and mobilize programs.
Regarding the bus replacement program, Macaulay shared concerns of school districts in Madera that the “technology is not quite there yet.” He added that the shift to electric buses would diminish the ability to procure buses.
Sheriffs urged replacing old buses first and asked how long the queue of applications was and whether zero fuels include biomethane.
DeYoung clarified that there will be room for additional applications. He said that there is a year cutoff, focusing on the oldest models.
Near zero includes natural gas fueling infrastructure for low NOX natural gas, which the state considers near zero. Buses will still include the district logo.
Robinson asked what the range is for the average unit. DeYoung said that the range is $400,000 each.
Preciado asked how funding for AB 617 could be optimized. Sheikh emphasized community engagement efforts through workshops informing residents about grants and incentives. Sheriffs asked for an updated inventory of buses.
Dietzkamei urged board members to check in and communicate with communities.
Hamilton asked whether EPA funds would support the school bus program. Sheikh said that the district is sharing information about the programs to school districts.
12) The board (5-0) adopted proposed amendments to District Rule 4402 (crude oil production sumps)
Gill said AB 617 requires the district to conduct and expedite the Best Available Retrofit Control Technology (BARCT) review and implementation schedule for CARB’s Cap-and-Trade Program facilities.
In 2021, the district conducted a BARCT rule analysis and found opportunities for crude production oil for Rule 4402 to align with the VOC exemption threshold for produced water in ponds with other air district rules. Rule 4402 was included as a SIP-strengthening measure in the 2022 Ozone Plan (VOC emissions are a precursor to ozone).
Rule 4402 covers all first/second/third stage sumps at facilities producing, gathering, separating, processing and storing crude oil in an oil field.
Ponds and sumps store produced water remaining after significant processing, including initial separation, extraction and further separation of oil.
The purpose of Rule 4402 is to limit VOC emissions from sumps.
Requirements are as follows:
- First-stage sumps are prohibited
- The second- or third-stage sumps must have an intact flexible floating cover, rigid floating cover or fixed roof cover impermeable to VOCs and covering the entire sump perimeter.
- Ponds and sumps storing produced water less than 35 mg/L VOC are exempt.
The proposed amendment will lower the VOC exemption threshold for ponds and sumps from 35 mg/L to 5 mg/L.
The exemption addresses BARCT and Ozone SIP requirements and aligns Rule 4402 VOC limit with other California air district rules.
Proposed amendments were developed through an involved public process with multiple opportunities for public comment. Public meetings on proposed amendments were held over two years.
13) The board (15-0) adopted proposed District Rules 3172 (Federally Mandated Ozone Nonattainment Fee – 2008 8-Hour Standard) and 3173 (Federally Mandated Ozone Nonattainment Fee – 2015 8-Hour Standard)
Lambert said the proposed District Rules 3172 and 3173 would fully satisfy federal CAA requirements by collecting non-attainment penalty fees if the Valley fails to attain the 2008 or 2015 federal eight-hour ozone standard.
If triggered, rules require ongoing annual fees from major stationary sources of NOx and VOC for actual emissions over 80% of their baseline actual emissions.Collection of fees continues until the Valley reaches attainment and EPA takes final action to re-designate the Valley as attainment for the standard.
The rules refrain from collecting these fees by the EPA, where funds would go into the general federal treasury that may not directly benefit the Valley.
Lambert stated that stationary sources for NOX sources consist of power plants and industrial boilers, while VOC is gas operations, landfills and facilities with organic compounds.
Dietzkamei hopes the district will cut ozone levels during the summer.
14) The board received a verbal report on California Air Resources Board activities.
Sheikh noted the CARB approval of the funding plan for Clean Transportation incentives, amounting to $624 million, $140 million of which is for Community Phasing programs, the Clean Cars For All Program and other programs.
He mentioned that the EPA recently approved a series of actions related to PM2.5 contingencies.
Closed session consists of:
- Pending litigation pursuant to government code section 54956.9(d)(2) for the following:
- San Joaquin Valley Unified Air Pollution Control District v. Ag Land Joint Venture, Fresno Co. Sup. Ct. Case No. 21CECG02452
- Public Employee Performance Evaluation under Government Code Sections 54957 and 54957.6 for the following:
- Executive Director/APCO
- District Counsel
The meeting ended at 1 p.m. The next meeting will be available through Zoom on Jan.18.
If you believe anything in these notes is inaccurate, please email us at fresnodocs@fresnoland.org with “Correction Request” in the subject line.
